Poor, Poor, Poor money management!! I need some direction on what to do. I am terrified of bankruptcy, and want to do anything to avoid it. I have read a number of things on your web site, which I truley appreciate, and you have talked about the failure rate of so many people who try debt management programs, but you never explain why so many people fail. I want to get out of debt, I want this massive monkey off my back, and I am just looking for some real advise that I can beleive in. Would love any kind of feedback.
Debt management fails because the extended repayment plan is not based on what is reasonable, affordable or sustainable for you. It is based on what the creditors want, which is just about the same each month as you are paying now. But if you could make that payment, you’d do that now.
Creditors want to see your budget that the debt management company will create for you and creditors don’t like to see that you are saving money in an emergency fund instead of forking over everything you can each month.
Because the repayment plan does not include a savings component all it takes is one unexpected big expense to throw you off track.
The ultimate issue here is that I feel like you are trying to bargain for a solution that you want on an emotional level, and not a solution that is best suited to your situation.
What I hear you saying is that you don’t like bankruptcy, for whatever reason, but that you’ve also discounted it as a possible solution based on your biases about what bankruptcy means to you.
Making an appointment to go in and talk to a bankruptcy attorney is free, asking all your questions is free, learning if bankruptcy is an appropriate solution for you is free. The only thing you will walk out of that appointment with the bankruptcy attorney is knowing the facts and be better informed to make a decision that is best for you.
I’m not telling you or suggesting that you go and do anything you don’t want to do. I’m simply suggesting, urging, that you get the facts first before you start erasing possible solutions.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.